| A | B |
|---|
| Caveat Emptor | Let the Buyer Beware |
| Caveat Venditor | Let the Seller Beware |
| consumer | Someone who buys or leases goods, real estate, or services for personal, family, or household purposes. |
| Who does federal consumer protection law apply to? | Businesses that sell real estate, goods, or services in interstate commerce, or business activity that touches more than one state. |
| unfair and deceptive practice | Any act that misleads consumers. |
| FTC (Federal Trade Commission) | The agency of the US government that promotes free and fair trade competition. |
| Fraudulent misrepresentation | Any statement that deceives the buyer. |
| cease and desist orders | Legally binding orders that would stop a practice that would mislead the public. |
| Bait and switch Advertising | A store advertises bargains that do not really exist to lure customers in the hopes that they will buy more expensive merchandise |
| Some signs of the bait and switch | 1) Refusing to show, demonstrate or sell the advertised product. 2) Attempting to discourage customers by criticizing the advertised product. 3) Claiming the advertised products are out of stock |
| Negative Option Rule | If you are joining something like a CD or book club, teh seller sends you announcements describing the monthly selection. If you want the selection, you do nothing and the seller ships it to you automatically. If you don't want it, you must tell the seller not to send it, and there is a deadline for notification. |
| The cooling off rule | This gives you 3 business days to cancel contracts for most purchases made away from the sellers place of business. |
| Telemarketers | The people who try to sell you products by telephone |
| 800 numbers | These numbers are toll free. |
| 900 numbers | Consumers are often charged excessively for these numbers. |
| This is part of the telemarketing sales rule | Calling times are restricted to the hours between 8:00AM and 9:00 PM |
